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Bitcoin (BTC) is exhibiting a curious twist on the market as control shifts from large holders to retail traders. This development, as it relates to Bitcoin futures, has severe implications for the leading cryptocurrency and the broader crypto market outlook.
Bitcoin retail traders replace whales in futures market
Insights from CryptoQuant, the online analytics platform, show that there has been reduced whale activity. Notably, Bitcoin’s futures market was previously driven by the activities of large holders, such as whales and institutions.
However, these big players have now pulled back, and it is increasingly being driven by retail traders with smaller-sized orders. With retail traders now in control, there are possibilities that the price of BTC will stagnate or face downward pressure.
In the last 21 days, Bitcoin has traded below $117,000 and maintained a price range despite the huge accumulation and activities on the market.
This development supports the bearish speculation that Bitcoin’s price outlook may not experience significant upward movement. Additionally, the potential Federal Reserve rate cut could increase bearish pressure.
The only way to reverse this trend is if whales step in to create strong buying pressure, thereby lifting the asset’s price. A bullish rally for BTC could have a spillover effect on other altcoins and support general crypto assets’ price outlooks.
Will whales return to trigger bullish rally?
As of press time, the Bitcoin price is changing hands at $113,200.80, which represents a 1.66% increase in the last 24 hours. It previously hit a peak of $113,225.44 before dipping to its current level. The stagnation continues despite an uptick in trading volume, which soared by 53.13% to $44.93 billion.
As far as whale accumulation goes, a whale recently pulled $55 million worth of Bitcoin from Binance in a move that market participants thought could trigger a rebound. However, the volume of whales in the market space has been low compared to retail traders.
Market observers will continue to monitor developments to see if the switch might reverse in the coming days.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team